Page 12 - AfrElec Week 21 2022

AfrElec COAL AfrElec

Shareholder activists

take Thungela to task

over emissions goals

SOUTH AFIRCA A shareholder activist group has criticised a governance (ESG) report that there are nearly
South African coal miner for using what it says 800mn people who do lack electricity, many in
is an unscientific emissions strategy and not markets in which it already serves. “We cannot
investing in environmental safeguards at its sit back until society has decided which technol-
decommissioned mines. ogies are most suitable and appropriate for the
Although Thungela Resources, the coal energy demands of tomorrow, when the markets
miner and exporter, exceeded its first emission we serve are critically dependent on the produc-
target in 2021, it only did so on the basis of exter- tion of high-quality coal today,” it says as cited by
nal factors, not a result of its deliberate internal The Africa Report.
plan, Cape Town-based activist outfit Just Share But Just Share says renewables are the cheap-
charges, according to The Africa Report. est way to increase access to electricity. Thunge-
Thungela demerged from Anglo-American la’s ESG report further says it has “comprehensive
in June 2021 and committed to reducing its mine closure and rehabilitation programmes” in
emissions by 15% by 2025 from a starting point place that “seek to return previously mined land
of 2016. It has not added a fresh target since then to its original condition for sustainable use”.
but has promised to, this year, set intermediate However, Just Share points to two spills of
targets and develop a “pathway to net zero by toxic discharge from unrehabilitated and poorly
2050”. rehabilitated Kromdraai on February 14. Fish
The company achieved its goal in 2021 and other aquatic life were affected in a number
with a 17% cut but, Just Share said, that was of streams and rivers. There was an earlier dis-
because of the impact of COVID-19 and the charge at the same mine in November 2021.
underperformance of South Africa’s freight Investors, according to Just Share, should
rail network. This, said Just Share, shows a lack insist that Thungela carries out a comprehensive
of a science-based climate strategy or emission audit of its unrehabilitated mine shafts and other
reduction targets at Thungela which should be a liabilities that “are likely to cause major environ-
“serious red flag for investors”. mental incidents in future”.
Thungela, which was expected to hold a vir- Thungela did not respond to questions from
tual annual general meeting on Tuesday (May The Africa Report, only saying they will do so to
24), produces thermal coal from seven mining Just Share “in due course”. The publication con-
sites in South Africa, and exports most of it to cludes that “Thungela will keep facing questions
India and other Asian markets, North Africa and until it has developed a clear strategy on emis-
the Middle East. sions reduction and auditing its mine shafts.” ™
It says in its environmental, social and

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